Alibaba Management Shakeup

Daily Crunch: December 6, 2021

A daily digest of TechCrunch's most significant and impactful stories is delivered to inboxes each day at 3 p.m. PST. You can subscribe to this roundup here.

Greetings, and welcome to the Daily Crunch for December 6, 2021. Despite the approaching holiday season, the flow of important tech news remains strong.

Key Developments

Recent developments, including shifts within Alibaba, substantial news concerning startups, inquiries from the SEC, and a notable cryptocurrency market downturn, are contributing to a dynamic environment. The repercussions of the crypto selloff are still being felt across various markets.

TechCrunch is dedicated to keeping you informed about these events and more. Let us provide you with a comprehensive update.

—Alex

TechCrunch's Top 3 Developments

This report highlights three significant events in the technology and business sectors, as covered by TechCrunch. These developments span executive changes at a major e-commerce firm, a potentially pivotal IPO, and increased scrutiny from the Securities and Exchange Commission.

Alibaba's Executive Restructuring

Significant personnel adjustments are occurring within Alibaba, the prominent Chinese e-commerce company. These changes are taking place amid speculation regarding a potential delisting of the company’s shares from U.S. stock exchanges.

The restructuring is considered substantial and reflects evolving operational strategies within the organization. Didi has already been making strides toward similar delisting preparations.

SenseTime's IPO and its Implications

The forthcoming Initial Public Offering (IPO) of SenseTime, a China-based artificial intelligence company, is anticipated to be a crucial indicator for future AI-related listings. It will also serve as a barometer for high-growth, high-spending Chinese technology firms.

As the separation between Chinese companies and international markets continues, Hong Kong is emerging as a key location for mainland companies seeking public listing opportunities. Consequently, the performance of SenseTime’s IPO will be closely watched.

Initial indicators regarding investor interest have been, at best, inconclusive.

SEC Investigations: Lucid and Trump Media

The Securities and Exchange Commission (SEC) is currently conducting investigations into Lucid Group, a company operating within the electric vehicle (EV) market.

Furthermore, the SPAC (Special Purpose Acquisition Company) partner associated with Trump Media & Technology Group, the organization behind TRUTH Social, is also facing inquiries from the SEC.

Both of these situations warrant close observation as they unfold.

Startups and Venture Capital Updates

Our startup coverage begins today with news reported by Manish Singh regarding potential investment in the Polygon project. This project is constructed on the Ethereum blockchain. While investor interest in acquiring tokens isn't unexpected, it signifies a substantial shift of cryptocurrency into the mainstream venture capital landscape.

Recent Funding Rounds

Several startups have recently secured significant funding, demonstrating diverse innovation across various sectors. These investments highlight emerging trends and growing market opportunities.

Smartphone-as-a-Service: A novel business model is gaining traction. Everphone, a Berlin-based company, has raised $65 million in a new funding round. The company provides a comprehensive service for enterprise customers, managing the entire lifecycle of mobile devices – from procurement and support to repair, replacement, and recycling – all under a per-user monthly subscription.
Edtech Investment in Latin America: Platzi, a Latin American edtech platform, has secured additional capital. CEO Freddy Vega explained to TechCrunch that the region’s reliance on natural resources creates a pressing need for future-focused skills development. Platzi’s unique, non-cohort based learning approach recently attracted $62 million in Series B funding.
Robotics and Delivery Services: Serve Robotics, a company spun out of Uber, has received $13 million in new funding. They specialize in building small, autonomous robots designed for last-mile deliveries in urban environments. The robots’ appealing design is considered a key factor in public acceptance.
Neobanking for Small Businesses: Nearside, formerly known as Hatch, has raised $58 million in a Series B round. This neobank focuses specifically on providing financial services to small businesses, offering a targeted alternative to traditional banking options.
Sustainable Packaging Solutions: Dispatch Goods is attracting investment thanks to its reusable container model. This approach aims to reduce plastic waste in landfills, oceans, and communities. Growing ecological awareness is driving demand for such sustainable solutions.
Expanding Marketplace in Africa and North America: TradeDepot, operating across Africa and North America, has secured $110 million in a combination of debt and equity financing. The company’s integrated marketplace, warehouse network, and Buy Now, Pay Later (BNPL) solution are proving attractive to investors.
OpenSea Strengthens Financial Leadership: OpenSea, the prominent NFT marketplace, has appointed Lyft’s former CFO as its new CFO. This move often precedes an Initial Public Offering (IPO). Given Lyft’s public status, the new CFO brings valuable experience in navigating the public market. An IPO from OpenSea is eagerly anticipated by industry observers.

These funding rounds and strategic hires demonstrate the dynamic nature of the startup ecosystem and the continued flow of capital into innovative ventures.

Credit Karma's First Year Under Intuit: A Review Following a Turbulent Acquisition

The acquisition of Credit Karma by Intuit, valued at over $7 billion, occurred in February 2020, coinciding with a significant downturn in the stock market. This market reaction was triggered by emerging concerns surrounding a novel virus and its potential to escalate into a global pandemic.

According to Credit Karma’s CEO, Ken Lin, the timing was precarious. He recalls a morning where Dow futures had plummeted by approximately 600 points as initial reports about COVID-19 began to impact financial markets.

Despite the unsettling circumstances, the acquisition proceeded. A comprehensive assessment of Credit Karma’s performance through a series of challenges, and its subsequent return to growth in 2021, was conducted by Ryan Lawler, involving interviews with key executives from both Credit Karma and Intuit.

The company successfully navigated a period of considerable uncertainty following the deal’s completion.

(Access to exclusive insights and resources for founders and startup teams is available through TechCrunch+. Membership details can be found here.)

Big Tech Inc.

The expansion of private spaceflight ventures persists, with Astra preparing for a launch from Florida. This will be their first attempt from that location since January.

DoorDash is currently piloting a system employing full-time delivery personnel. This initiative is focused on accelerating delivery speeds within New York City, necessitating a shift towards internalizing some delivery roles.

Automotive Industry Developments

Toyota has announced plans to establish a battery manufacturing facility in North Carolina. This investment signifies a commitment to bolstering domestic production and reflects the growing importance of the electric vehicle market.

Tech Education Initiatives

Apple is collaborating with the Boys and Girls Club to provide coding education. Students will be introduced to Javascript and the fundamentals of application development and design.

Apple states this partnership will offer students opportunities to learn about app creation and the core principles of software development, according to TechCrunch.

Autonomous Vehicle Safety

Argo AI is working with a cyclist advocacy group to develop guidelines for autonomous vehicle interactions. This collaboration addresses the increasing deployment of self-driving technology and its potential impact on cyclist safety.

The growing pace of commercial autonomous vehicle projects necessitates careful consideration of vulnerable road users. Ensuring the safety of cyclists alongside advancing autonomous vehicle technology is a critical undertaking.

Finding common ground and prioritizing cyclist safety is paramount as these technologies continue to evolve.